It should work on Touch, but some minor modifications will be needed (for instance size of Xephyr window and DPI settings)

But I don't own Touch, so I couldn't try it. Do it and tell us results

PS. I'll prepare repository with meta package for automatic installation of this environment, so getting it to work will be much easier. I'll include full sources for every patch together with it (now must wait for friend to became online, cause he was kind enough to give me his CPU time for qemu building and all sources are on his PC )